U.S. publicly traded companies have five times higher market capitalisation than China’s
The United States and China host various competing companies with a global reach aiming to assert dominance in multiple sectors. LPHowever, U.S. firms appear to be prospering, registering high valuations.
According to data compiled by Finbold, the top ten U.S. publicly traded companies have a cumulative market capitalization of 12.82 trillion dollars as of December 21, 2021. The valuation is at least five times more than China’s top ten counterparts that have a market capitalization of 2.54 trillion dollars.
Tech giant Apple ranks top with a market cap of 2.7 trillion dollars, followed by Microsoft at 2.4 trillion dollars, while Alphabet is third at 1.8 trillion dollars. Amazon ranks fourth at 1.6 trillion dollars, followed by Meta at 905.3 billion dollars.
Other companies with a high valuation in the U.S. include Tesla (903.7 billion dollars), Nvidia (690.7 billion dollars), Berkshire Hathaway (648.6 billion dollars), United Health (455.6 billion dollars), and JPMorgan Chase (454.9 billion dollars).
In China, Tencent ranks as the largest firm with a valuation of 529.2 billion dollars, followed by Kweichow Moutai at 401.2 billion dollars, with eCommerce giant Alibaba ranking third at 311.7 billion dollars. ICBC is in the fourth spot with a market cap of 242.2 billion dollars, followed by CATL at 220.7 billion dollars.
Other Chinese companies with a high valuation include CM Bank ($200.2 bank), China Construction (171.1 billion dollars), Meituan (166.8 billion dollars), Agricultural Bank of China (157.4 billion dollars), and Wuliangye Yibin (140.9 billion dollars).
The U.S. dominated by tech companies
The report acknowledges that the U.S. companies are dominated by technology companies that have experienced significant growth over the recent months. According to the research report the valuation comes after the technology sector experienced unprecedented growth inspired by the pandemic. The industry’s stocks gained prominence as their products offered consumers the means to navigate the lockdowns initiated to control the health crisis.
The U.S. companies are also backed by a large domestic market, a large GDP, and a homogenous language. Interestingly, despite China boasting of a significantly higher population, the domestic market seems to have minimal influence on the companies’ valuation.
